The Ghana Lotto Operators Association (GLOA) has mounted a strong defence of the contribution of licensed Private Lotto Operators (PLOs) to the National Lottery Authority (NLA) and the Ghanaian economy, arguing that recent attempts to compare KGL Technology Limited’s reported payments to the state with the contributions of private operators present a distorted picture of the realities within the lottery industry.
According to GLOA, the 29 licensed Private Lotto Operators operating under the NLA remain one of the largest contributors to employment creation, grassroots economic activity and revenue generation within the lottery ecosystem, and should be assessed on the basis of their total economic impact rather than a narrow focus on headline revenue figures.
The Association contends that comparisons between KGL’s reported GH¢173 million contribution in terms of profit sharing and the combined GH¢44.9 million licence fees paid by private operators to the NLA in 2025 fail to take into account the fundamentally different operating conditions under which the two entities function.
Different business models
GLOA explained that Private Lotto Operators and KGL operate under entirely different frameworks within the lottery industry.
According to the Association, while the 29 operators function as licensed lotto operators under the provisions of the National Lotto Act, KGL operates as a collaborator of the National Lottery Authority under a separate arrangement.
GLOA maintained that because the two entities operate under different structures, direct comparisons of revenue contributions without considering their respective operating environments are inherently flawed.
“The public is being presented with a comparison between entities operating under fundamentally different conditions,” the Association stated.
Exclusive market access creates advantage
A major concern raised by GLOA is what it describes as the exclusive access enjoyed by KGL to a dedicated USSD platform.
According to the Association, this exclusive arrangement provides KGL with access to a large segment of the lottery market through mobile-based transactions, giving it a significant competitive advantage unavailable to licensed private operators.
GLOA argued that market access is one of the most important drivers of revenue generation in the lottery business and that any assessment of contributions to the NLA must take this reality into account.
The Association believes that exclusive access to a dedicated USSD platform substantially expands transaction volumes while reducing operational complexity.
Private operators carry heavy infrastructure costs
Unlike operators relying primarily on digital channels, GLOA said Private Lotto Operators maintain extensive nationwide physical networks that require substantial investments.
The Association explained that operators are responsible for financing Point of Sale (POS) terminals, lotto kiosks, transportation systems, maintenance services, support infrastructure, and extensive administrative systems.
In addition, operators must recruit, train and support thousands of lotto writers, agents, supervisors and sub-agents throughout the country.
According to GLOA, these investments account for approximately 60% of operating costs before customer winnings, taxes and regulatory obligations are considered.
The Association noted that equipment procurement, repairs, maintenance, transportation and personnel expenses collectively represent a major financial commitment that enables lottery services to reach communities across Ghana.
Major contributor to NLA revenue
Despite these significant operational costs, GLOA says Private Lotto Operators continue to make substantial contributions to the National Lottery Authority.
The Association disclosed that each of the 29 licensed operators pay annual licence fee of GH¢1.5 million to NLA.
Beyond these payments, GLOA stressed that operators also contribute through taxes paid to the state, payments made to the Good Causes Foundation, and compliance with numerous regulatory obligations.
According to the Association, these payments form an important source of funding within the lottery ecosystem and demonstrate the commitment of private operators to supporting the objectives of the National Lottery Authority.
Supporting more than one million livelihoods
GLOA says perhaps the most overlooked aspect of the private lottery sector is its role as a major source of employment.
According to the Association, more than one million Ghanaians derive direct or indirect livelihoods from the activities of Private Lotto Operators.
The nationwide network includes lotto writers, agents, supervisors, sub-agents, transport operators, maintenance personnel and other support workers whose incomes depend on the industry’s continued growth.
The Association explained that lotto writers receive commissions equivalent to 25% of gross revenue while supervising agents earn an additional five per cent.
These commissions, GLOA noted, inject significant amounts of money into local economies and provide sustainable incomes for thousands of households.
“The value of supporting more than one million livelihoods must form part of any serious assessment of the industry’s contribution,” the Association stated.
Wider economic impact
Beyond employment, GLOA argued that the lottery industry plays a significant role in stimulating local economic activity.
According to the Association, the industry’s demand for kiosks, equipment, transportation, maintenance services, and other operational requirements supports numerous small and medium-sized enterprises across the country.
These expenditures create economic opportunities in both urban and rural communities while generating additional tax revenue for the state.
GLOA said the private lottery sector has evolved into an important economic ecosystem that supports financial inclusion and entrepreneurship, particularly within the informal sector.
Call for holistic evaluation
The Association is, therefore, calling on government, regulators, and policymakers to adopt a broader framework for evaluating contributions within the lottery industry.
According to GLOA, assessments should consider not only direct revenue payments but also employment creation, taxes, investments in infrastructure, contributions to the Good Causes Foundation, operational costs, market access, and long-term industry sustainability.
GLOA maintained that private lotto operators have consistently supported the National Lottery Authority while making substantial investments in jobs and economic development.
The Association concluded that the future of Ghana’s lottery sector should be guided by policies that recognize the full economic value generated by all stakeholders, particularly the industry’s contribution to employment creation, revenue mobilisation and national development.
